Challenges of restaurants facing in HK Essay

INTRODUCTIONIt is well known that Hong Kong is a victuals for thought paradise since there is an tramp of types of fare and a wide slog of restaurants can be founded in Hong Kong. The blood of restaurants plays an important fiber in the diet emolument sector in Hong Kong and it is agnizeing neural impulse ascribable to the variety kinds of pabulum provided. However, due to the live, working class and competition factors, Hong Kong restaurants argon liner challenges both internally and externally, and as a consequence, they are opening and closing at a fast pace. (Chung,2013)CHALLENGE 1First and foremost, one of the crucial challenges confront by Hong Kong restaurants is the soaring rent of their locations. collectable to the ontogenesis tension of the land wont in Hong Kong, the land price is increasing and as a result, the rent is rising. The enormous amount of property rental change magnitude by the property owners matchs a big(a) financial burden on the res taurants. Since they cannot gain any profits if they learn to birth such an expensive rent, therefore, they go away submit no choice scarcely to neighboring down their restaurants. The famous Lei Yuen juke joint Noodles (Chung, 2013) behind Sogo Department Store in Causeway bay is a slighton in point. It was forced to close because it was laid in the core area in Causeway Bay and the rent was doubled. This fictitious character shows that the insurmountable rent may stretch forth to an end of a restaurant affair. Besides, the food cost is an opposite challenges to Hong Kong restaurants. Due to the inflation, the cost of ingredients is increasing. Some commodities like vegetables, cooking oil, cheesef start and beef are costing higher, restaurants need to pay more and the profit is lower (Ryan, 2011). Some restaurants had tried not to increase the price od their dishes and make less profit they could get in roam not to scare off their patrons initially, however, with th e fast(a) rise of food cost, they were not be able to impede the increase of their carte prices. Undoubtedly, the increase in the price of menus resulted in a loss of customers.CHALLENGE 2Moreover, labor shortfall is also a key challenge of Hong Kong restaurants.(Wong, 2011) Because of the long on the job(p)s hours and tough work, many great deal are not willing to work in a restaurant, except those are emotional ab come out of the closet food and beverage. With fewer newcomers in this industry, there is a lose of in force(p) staff. Although there is an implementation of minimum mesh law in order to disallow workers from depriving, many people will elect exploring in other industries rather that working in restaurants, e additionally the Generation Y who born in the 1980s and 1990s. McDonalds Restaurants (Hong Kong) Limited is a case in point (Wong, 2011). The Generation Y classify of staff has become increasingly meandering(a) after the imposition of minimum net prof it law. They would like to seek better opportunities in other areas instead of working for long hours in the food industry. Since there will be fewer passionate people in food and beverage among the youngsters, as a consequence, there may be a shortfall of restaurants workers after the preceding(a) of the current talented staff. The service note and operational efficiency may not be sustained with a shortage of labor. Therefore, restaurants are facing a painful difficulty in the aspect of labor use.CHALLENGE 3Last but not least, there is a uncultivated competition among restaurants. In todays highly customer-oriented marketplace, maintain increasing levels of food hygiene and service quality is for sure important. Restaurants need to ensure that the basic service is good and the menu should not be dull and it should include some special dishes regularly in order to root for customers. However, it is not the only requirement for maintain restaurants competitive edge. Becoming a prosperous restaurant, not only do the food and service are in a good quality, media attention is also needed. nigh of the upscale restaurants in Hong Kong are self-assertive in holding events or collaborating with other business partners to offer promotions and to attract media attention. They will also add leisure components to the eat experience, such as wine taste sessions, cooking classes or food picture taking courses(HKQAA,2011). Many casual restaurants also claim advantage of the social media platforms, for instance, OpenRice and Facebook, to promote themselves by offering discounts. It shows that the competition among restaurants is extremely vicious and media attention plays a key role in the competition of restaurants. If the restaurants cannot balk out tocatch customers attention through media, the business may not be booming when they are comparing with other restaurants. final resultTo conclude, restaurants are facing many challenges in Hong Kong, ranging fr om internal challenges to external challenges. Although the monetary challenges, lack of labor and the fierce competition add a burden on rill the restaurants business, there are always solutions to make for the problems. With the perfect service and tasty food provided, restaurants can succeed and always stand out from others.REFERENCESCathie Chung(2013),Attractiveness And Challenges Of Restaurant Business In Hong Kong (Websitehttp//www.joneslanglasalle communicate.com/APResearch/retail-research/attractiveness-and-challenges-of-restaurant-business-in-hong-kong.UmvxjRaA3X9)HKQAA(2013),VISION (Website http//www.hkqaa.org/cmsimg/1375072136vision48.pdf)Nicolette Wong(2011),Challenges and incentives motivate young restaurant workers (Website http//cthr.ctgoodjobs.hk/ denomination/show_article.aspx/1174-14129-challenges-and-incentives-motivate-young-restaurant-workers)RYAN(2011),Can Restaurants Increase Their Menu Prices In chemical reaction To The Rising Food Cost? (Website http//ww w.kng.com/blog/food-and-beverage-news/can-restaurants-increase-their-menu-prices-in-response-to-the-rising-food-cost/)